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Dell: Partners grow revenue, register more deals

Dell's channel VP reports expanding Dell partner revenue and deal registrations, noting some channel allies are more than doubling their Dell business.

Adding some channel partner color to Dell's recent fiscal 2016 first quarter results, Cheryl Cook, vice president of global channels & alliances, talked up higher deal registration numbers, deeper penetration into accounts and an uptick in revenue growth for the top 100 Dell partners.

In a briefing this week, Cook pointed to four U.S. partners in particular who reported hyper revenue growth of between 100% and 600% over the past two years:

  • Ocean Computer Group, Matawan N.J., topped the chart with 600% plus growth in its Dell business.  The company, a certified Dell partner since 2011 and a Dell partner since 2006, focuses on selling end-to-end Dell products and services in the public and commercial sectors.
  • Two west coast companies, Groupware Technology, Campbell, Calif. and Lilien Systems, Larkspur Calif., reported 300%-plus growth and 185% growth in their Dell business over the past 24 months, respectively. Groupware, a Dell certified partner since 2015, and Lilien, a Dell Certified partner since 2012, both sell Dell enterprise solutions.
  • Advanticom Inc.,  Pittsburgh, Pa., reported growth in its Dell business of 160% plus over the past two years. A Dell Certified Partner since 2009, Advanticom sells Dell enterprise and client solutions.

Michael Coogan, director of business partner services and consulting at Ocean Computer Group, said the company's big increase in its Dell business is in part due to the state of flux in the IT industry; i.e., partner business consolidations and acquisitions, but also because the company became a more dedicated Dell partner.

"We saw the growth in Dell's managed deployment services and the hardware piece," he said, referring to Dell virtualization solutions, enterprise-class hardware and end-user computing -- particularly client hardware in the K-12 market.

Coogan also noted that Dell has made major strides in making it easier and simpler for him to identify the right contacts within the vendor organization as well as work more collaboratively with partners.

Dell partners' revenue climbs

Cook stated that according to the company's fiscal 2016 first quarter results (reported on May 26), Dell continued to maintain momentum and growth across business units and geographic market segments, with partner business revenue climbing to the point where it now accounts for more than 40% of total company revenue.

Dell's commercial channel revenue increased 6% year over year while its enterprise channel business revenue rose 18% year over year. In addition, the vendor saw a record quarter in deal registration volumes in North America: 34,000, up 25% from the last quarter. That figure globally was 94,000 for an increase of 21% quarter on quarter.

The number of deal registrations in the first quarter typically showed a seasonal slowdown. "So for the channel to maintain the kind of momentum we're seeing, I'm delighted," said Cook.

Dell also tracked business expansion in line of business (LOB) accounts, meaning either doing more business with a customer or broadening the relationship beyond a single buyer. The vendor reported that in Q1 LOB increased 115% globally year over year, and 75% in North America for the same time period.

As a result, Cook noted the company is paying out more partner rebates to the tune of a 60% increase compared with  the same time period last year.

So for the channel to maintain the kind of momentum we're seeing -- I'm delighted.
Cheryl CookVice president of global channels & alliances, Dell

The vendor's certified partner count (Premier and Preferred level partners) increased 9% year over year with Dell reporting a total of 4,300 partners. The top 100 certified partners grew their revenue by 40% by way of increased training and certification, according to Cook.

In North America, Dell reported a 14% increase in competencies completed with strong software adoption around data protection, networking and network security. On a global level, the company conducted 52,000 training courses in Q1 up 26% from the same time last year.

Resource investment

From an account planning perspective, Dell reported more than 2,000 sessions between partners and Dell sales leaders. Cook said the company continues to invest in Dell-funded resources such as business development and technology architects who work on site with Dell partners. "We put 130 Dell individuals into a partner's company to enable their Dell business," she said.

The company also funded or financed more than 2,000 partners, accounting for more than $5 billion annually. Adoption of Dell Financial Services was up 36% year over year.

On another note, Cook said that Dell backfilled the position left vacant when Dell veteran and executive director of North American channel sales Bob Skelley left the company in April to take on the position of vice president of global channels at Infinio. David Miketinac took over the role and has responsibility for the regional value-added reseller team and distribution business in North America.

Next Steps

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